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New York Mortgage Trust Inc. Message Board

  • just_another_name just_another_name Mar 15, 2013 3:37 PM Flag

    SPO?

    In just under a month this stock has run from about $6.85 - $7.60. That is highly unusual for this stock and it obviously makes everyone think about if there is an upcoming SPO. So to begin that debate here are some reasons why doing one right now wouldn't make sense:

    1. Per the last earnings release they said that the last SPO was taking longer to invest. So to do another one right now wouldn't provide much value.
    2. Ex-dividend is only a couple weeks away so why do a SPO right now and be forced to pay a dividend on the new shares with no corresponding income from putting the proceeds to work. The ideal time to do the SPO would be just after Ex-Dividend.

    Reasons to do an SPO:

    1. The price is above net book value and would be accretive.
    2. The yield has slightly expanded since the beginning of the year and it would be good to take advantage.

    So let the guessing begin and thoughts would be appreciated.

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